MY BIZ: Government promises new year push on FDI

Foreign direct investment (FDI) could get a further boost in the New Year with the government on Wednesday indicating liberalisation of the policy in the coming weeks.

"The government will continue its endeavour for liberalising the FDI policy further in the coming weeks to ensure that India retains its leadership position for attracting foreign investment," commerce and industry minister Anand Sharma said in a statement.

According to Sharma, India was rated as the most-favoured investment destination globally in 2013.

Commerce Minister Anand Sharma vowed that India would "retain its leadership position for attracting
foreign investment"

"The decisions of the government have resonated with the global community and we have seen results in the last few months," Sharma said.

Last year, the policy was revised with the government allowing more foreign investment in several sectors like telecom, defence, public sector oil refineries, commodity bourses, power exchanges and stock exchanges.

The ministry is now working to relax FDI norms in the Railways and construction.

In April-October this fiscal, the country attracted FDI worth $12.6 billion, a decline of 15 per cent over the same period last year.

An optimistic Sharma said that the coming months will see a greater push for development of industrial corridors across the country and work will commence for establishment of the first few cities along the Delhi-Mumbai Industrial Corridor (DMIC).

The $90-billion DMIC project is aimed at creating mega industrial infrastructure along the Delhi-Mumbai Rail Freight Corridor, which is under implementation.

Japan is providing financial and technical aid for the project, which will cover seven states totalling 1,483km.

"I expect that with greater foreign investment and technology collaborations, Indian manufacturing will also move up the value chain and acquire greater competitiveness globally," the minister added.